The following information was extracted from the accounting records of MVA Corporation. MVA sold 20,000 items during the accounting period.

Total Sales revenue $1,200,000

Total variable costs $400,000

Total fixed costs $480,000

If MVA pays $100,000 for advertising, and sales volume increases by 10%, by how much will net income change?

	a.	decrease by $68,000
	b.	decrease by $20,000
	c.	increase by $120,000
	d.	increase by $20,000
	e.	no change to net income